Freight mobility infrastructure improvement program

(a)

Establishment of Program

The Secretary shall establish a program to provide grants to States and designated entities for projects to improve the efficiency of freight mobility in the United States. (b)

Definitions

In this section, the following definitions apply: (1)

Designated entity

The term designated entity means— (A)an entity designated by the chief executive officer of a State, the Mayor of the District of Columbia, or the designee of either, as eligible to apply for and receive funding under the program established under subsection (a); or (B)a regional authority if the authority is responsible under the laws of a State for a capital project. (2)

Eligible project costs

The term eligible project costs means the— (A)reimbursement of the costs of development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities; and (B)the costs of construction, reconstruction, rehabilitation, and acquisition of real property (including land related to the project and improvements to land), environmental mitigation, construction contingencies, acquisition of equipment, and operational improvements. (3)

Eligible project

The term eligible project means any freight mobility infrastructure project that meets the criteria established in subsection (d). (4)

State

The term State has the meaning given such term in section 101(a) of title 23, United States Code. (c)

Applications

A State or designated entity seeking to receive a grant under this section for an eligible project shall submit to the Secretary an application in such form and in accordance with such requirements as the Secretary may require. (d)

Competitive Grant Selection and Eligibility Criteria for Grants

(1)

In general

The Secretary shall— (A)award grants on a competitive basis; (B)conduct a national solicitation for applications; and (C)establish criteria for selecting among freight projects of national and regional significance that include, but are not limited to, those which enable— (i)the construction of grade separations at railroad, highway, and railroad-highway junctions; (ii)the construction of railroad bypasses and spurs; (iii)the construction of railroad side tracks; (iv)the expansion of rail and highway tunnels to accommodate larger, taller, and additional volumes of vehicular and rail freight and container stacks; (v)the addition of railroad track and intermodal facilities at international gateways, land, air, and sea ports, points of congestion, and logistic centers; (vi)highway and road construction at international gateways, land, air, and sea ports, points of congestion, and logistic centers to better accommodate freight traffic; (vii)the construction and improvement of rail and highway bridges that carry a substantial amount of freight; (viii)the construction of highway ramps that carry a substantial amount of freight; and (ix)the construction of highway lanes, including lanes that segregate freight and passenger vehicular traffic. (2)

Project Requirements

The Secretary may approve a grant under this section for a project only if the Secretary determines that the project— (A)is based on the results of preliminary engineering; (B)is justified based on extent to which the project— (i)will enhance national and regional economies by allowing for economic development and growth, as measured by— (I)the impact on the Nation’s gross domestic product; (II)increases in new businesses and jobs and retention of existing businesses and jobs; (III)State and local tax receipts; and (IV)improved safety as measured by reductions in accidents, injuries, and fatalities; (ii)seeks to maximize economic opportunities for communities, including increasing local hiring; (iii)is cost-effective; and (iv)will improve freight mobility and national freight capacity and efficiency; and (C)is supported by an acceptable degree of non-Federal financial commitments. (3)

Selection considerations

In selecting a project under this section, the Secretary shall consider the extent to which the project— (A)improves freight mobility and national freight capacity and efficiency; (B)uses operational efficiencies, including intelligent transportation systems, that enhance the efficiency, effectiveness, or both the efficiency and effectiveness of the project; (C)helps maintain or protect the environment; and (D)complements and supports the objectives of the State or designated entity applicant’s strategic freight plan. (4)

Preliminary engineering

In evaluating a project under paragraph (2)(A), the Secretary shall analyze and consider the results of preliminary engineering for the project. (5)

Non-Federal Financial Commitment

(A)

Evaluation of Project

In evaluating a project under paragraph (2)(C), the Secretary shall require that— (i)the proposed project plan provides for the availability of contingency amounts that the Secretary determines to be reasonable to cover unanticipated cost increases; and (ii)each proposed non-Federal source of capital and operating financing is stable, reliable, and available within the proposed project timetable. (B)

Considerations

In assessing the stability, reliability, and availability of proposed sources of non-Federal financing under subparagraph (A), the Secretary shall consider— (i)existing financial commitments; (ii)the degree to which financing sources are dedicated to the purposes proposed; (iii)any debt obligation that exists or is proposed by the recipient for the proposed project; and (iv)the extent to which the project has a non-Federal financial commitment that exceeds the required non-Federal share of the cost of the project. (6)

Regulations

Not later than 180 days after the date of enactment of this Act, the Secretary shall issue regulations on the manner in which the Secretary will evaluate and rate the projects based on the results of preliminary engineering, project justification, and the degree of non-Federal financial commitment, as required under this subsection. (7)

Project evaluation and rating

(A)

In general

A proposed project may advance from preliminary engineering to final design and construction only if the Secretary finds that the project meets the requirements of this subsection and there is a reasonable likelihood that the project will continue to meet such requirements. (B)

Evaluation and rating

In making such findings, the Secretary shall evaluate and rate the project as highly recommended, recommended, or not recommended based on the results of preliminary engineering, the project justification criteria, and the degree of non-Federal financial commitment, as required under this subsection. In rating the projects, the Secretary shall provide, in addition to the overall project rating, individual ratings for each of the criteria established under the regulations issued under paragraph (6). (e)

Letters of Intent and Full Funding Grant Agreements

(1)

Letter of Intent

(A)

In general

The Secretary may issue a letter of intent to an applicant announcing an intention to obligate, for a project under this section, an amount from future available budget authority specified in law that is not more than the amount stipulated as the financial participation of the Secretary in the project. (B)

Notification

At least 60 days before issuing a letter under subparagraph (A) or entering into a full funding grant agreement, the Secretary shall notify in writing the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works of the Senate of the proposed letter or agreement. The Secretary shall include with the notification a copy of the proposed letter or agreement as well as the evaluations and ratings for the project. (C)

Not an obligation

The issuance of a letter is deemed not to be an obligation under sections 1108(c), 1108(d), 1501, and 1502(a) of title 31, United States Code, or an administrative commitment. (D)

Obligation or commitment

An obligation or administrative commitment may be made only when contract authority is allocated to a project. (2)

Full funding grant agreement

(A)

In general

A project financed under this subsection shall be carried out through a full funding grant agreement. The Secretary shall enter into a full funding grant agreement based on the evaluations and ratings required under subsection (d)(7). (B)

Terms

If the Secretary makes a full funding grant agreement with an applicant, the agreement shall— (i)establish the terms of participation by the United States Government in a project under this section; (ii)establish the maximum amount of Government financial assistance for the project; (iii)cover the period of time for completing the project, including a period extending beyond the period of an authorization; and (iv)make timely and efficient management of the project easier according to the laws of the United States. (C)

Agreement

An agreement under this paragraph obligates an amount of available budget authority specified in law and may include a commitment, contingent on amounts to be specified in law in advance for commitments under this paragraph, to obligate an additional amount from future available budget authority specified in law. The agreement shall state that the contingent commitment is not an obligation of the Government. Interest and other financing costs of efficiently carrying out a part of the project within a reasonable time are a cost of carrying out the project under a full funding grant agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the project at the time of borrowing. The applicant shall certify, in a way satisfactory to the Secretary, that the applicant has shown reasonable diligence in seeking the most favorable financing terms. (3)

Amounts

The total estimated amount of future obligations of the Government and contingent commitments to incur obligations covered by all outstanding letters of intent and full funding grant agreements may be not more than the greater of the amount authorized to carry out this section or an amount equivalent to the last 2 fiscal years of funding authorized to carry out this section less an amount the Secretary reasonably estimates is necessary for grants under this section not covered by a letter. The total amount covered by new letters and contingent commitments included in full funding grant agreements may be not more than a limitation specified in law. (f)

Grant requirements

(1)

In general

A grant for the construction of a highway under this section shall be subject to all of the requirements of title 23, United States Code. (2)

Other terms and conditions

The Secretary shall require that all grants under this section be subject to all terms, conditions, and requirements that the Secretary decides are necessary or appropriate for purposes of this section, including requirements for the disposition of net increases in value of real property resulting from the project assisted under this section. (g)

Government’s Share of Project Cost

Based on engineering studies, studies of economic feasibility, and information on the expected use of equipment or facilities, the Secretary shall estimate the cost of a project receiving assistance under this section. A grant for the project shall not exceed 80 percent of the project cost. (h)

Annual report

Not later than the first Monday in February the year after the date of enactment of this Act and each year thereafter, the Secretary shall submit to the Committees on Transportation and Infrastructure and Appropriations of the House of Representatives and the Committees on Environment and Public Works and Appropriations of the Senate a report that includes— (1)a proposal on the allocation of amounts to be made available to finance grants under this section; (2)evaluations and ratings, as required under subsection (d); and (3)recommendations of projects for funding based on the evaluations and ratings and on existing commitments and anticipated funding levels for the next 3 fiscal years and for the next 10 fiscal years based on information currently available to the Secretary. (i)

Applicability of Title 23

Funds made available to carry out this section shall be available for obligation in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, except that such funds shall not be transferable and shall remain available until expended and the Federal share of the cost of a project under this section shall be as provided in this section.

Freight Mobility Infrastructure Fee and Tax

(a)

Imposition of Tax

(1)

In general

Chapter 33 of the Internal Revenue Code of 1986 is amended by adding after subchapter C the following new subchapter:

Transportation by Freight Rail and Highway

Sec. 4286. Imposition of tax.

4286.

Imposition of tax

(a)

In general

There is hereby imposed upon taxable ground transportation of property within the United States a tax equal to 1 percent of the fair market value of such transportation. (b)

Fair market value of taxable ground transportation

(1)

Transportation by unrelated persons

In the case of amounts paid to an unrelated person engaged in the business of transporting property by freight rail or highway for hire, the fair market value shall be the amount paid for transporting such property. (2)

Transportation by related persons

In the case of transportation of property by the taxpayer or a person related to the taxpayer, the fair market value of such transportation shall be the amount which would be paid for transporting such property if such property were transported by an unrelated person, determined on an arms’ length basis. (c)

By whom paid

(1)

In general

Except as provided by paragraph (2), the tax imposed by subsection (a) shall be paid— (A)by the person making the payment subject to tax; or (B)in the case of transportation by a related person, by the person for whom such transportation is made. (2)

Payments made outside the United States

If a payment subject to tax under subsection (a) is made outside the United States and the person making such payment does not pay such tax, such tax shall be paid by the person to whom the property is delivered in the United States by the person furnishing the last domestic segment of the taxable ground transportation in respect of which such tax is imposed. (3)

Determinations of amounts paid in certain cases

For purposes of this section, rules similar to the rules of section 4271(c) shall apply. (d)

Transfer of amounts equivalent to tax to National Freight Mobility Infrastructure Fund

There are hereby appropriated to the National Freight Mobility Infrastructure Fund amounts equivalent to the taxes received in the Treasury under subsection (a). (e)

Definitions

For purposes of this part— (1)

Taxable ground transportation

The term taxable ground transportation means transportation of property by— (A)freight rail; or (B)commercial motor vehicle (as defined in section 31101(1) of title 49, United States Code) for a distance of more than 50 miles. (2)

Related person

A person (hereinafter in this paragraph referred to as the related person) is related to any person if the related person bears a relationship to such person specified in section 267(b) or 707(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), 10 percent shall be substituted for 50 percent.

(2)

Exemption for United States and possessions

Section 4293 of such Code is amended by striking subchapter B and inserting subchapters B and D. (3)

Credits or refunds to persons who collected certain taxes

Section 6415 of such Code is amended by striking or 4271 each place it appears and inserting 4271, or 4286. (4)

Effective date

The amendments made by this subsection shall apply to transportation beginning on or after the first October 1 beginning on or after the date of the enactment of this Act. (b)

Freight Mobility Customs Fee

(1)

Fee assessment

Subsection (a) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a)) is amended by adding at the end the following new paragraph:

(11)For carrying out the purposes of the National Freight Mobility Infrastructure Act, a fee in addition to the fee assessed under paragraph (9), in an amount equal to 25 percent of the fee assessed under paragraph (9).

(2)

Disposition of Fee

Subsection (f) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)) is amended— (A)in paragraph (1)— (i)in subparagraph (A), by striking , and and inserting a semicolon; (ii)in subparagraph (B), by striking the period and inserting ; and; and (iii)by adding at the end the following new subparagraph:

(C)the fees collected under subsection (a)(11) of this section and deposited under paragraph (7) into the National Freight Mobility Infrastructure Fund established by the National Freight Mobility Infrastructure Act.

; and

(B)by adding at the end the following new paragraph:

(7)In the first fiscal year beginning after the date of the enactment of the National Freight Mobility Infrastructure Act, and each fiscal year thereafter, there shall be deposited into the National Freight Mobility Infrastructure Fund established by such Act, fees collected under subsection (a)(11).